SIPEF SIPEF
Analyst presentation
August 13, 2020
The Connection to the world of Sustainable Tropical Agriculture | 1 |
Summary
SIPEF group - Company profile
SIPEF group - Palm oil in the world
SIPEF group - Update expansion
SIPEF group - Production & prices
SIPEF group - Financial performance
SIPEF group - Peer review
The Connection to the world of Sustainable Tropical Agriculture | 2 |
SIPEF group - Company profile
Agriculture
Tropical
Sustainable
Connection
- 1st segment of the supply chain - commodities
- Recent industrialised countries
- Audited certifications
- Publicly quoted
The Connection to the world of Sustainable Tropical Agriculture | 3 |
SIPEF group - Company profile
Continuous production
Diversified in product
Diversified in origin
- Continuous crops
- Palm oil : basic commodity for food (and recently energy)
- Rubber : cyclic business - tire industry
- Indonesia : leading producing country within Asian market
- PNG : export oriented with strong agronomical basics
The Connection to the world of Sustainable Tropical Agriculture | 4 |
SIPEF group - Company profile
Worldwide
The Connection to the world of Sustainable Tropical Agriculture | 5 |
SIPEF group - Company profile
Indonesia
6
SIPEF group - Company profile
Papua New Guinea
The Connection to the world of Sustainable Tropical Agriculture | 7 |
SIPEF group - Company profile
Planted hectares summary 100% - 30 June 2020
2020 | Indonesia | PNG | Ivory Coast Hectares 100% | % of total | Group share | % of total | |
Palm | 61 038 | 13 628 | 0 | 74 666 | 90% | 69 151 | 90% |
Rubber | 5 518 | 0 | 0 | 5 518 | 7% | 4 980 | 7% |
Tea | 1 786 | 0 | 0 | 1 786 | 2% | 1 612 | 2% |
Bananas | 0 | 0 | 794 | 794 | 1% | 794 | 1% |
Other | 0 | 0 | 31 | 31 | 0% | 31 | 0% |
Total planted | 68 343 | 13 628 | 825 | 82 795 | 100% | 76 568 | 92% |
% of total | 83% | 16% | 1% | ||||
Group share | 62 115 | 13 628 | 825 | ||||
8 |
The Connection to the world of Sustainable Tropical Agriculture
Summary
SIPEF group - Company profile
SIPEF group - Palm oil in the world
SIPEF group - Update expansion
SIPEF group - Production & prices
SIPEF group - Financial performance
SIPEF Group - Peer review
The Connection to the world of Sustainable Tropical Agriculture | 9 |
SIPEF group - Palm oil in the world
Palm oil in the world - Population growth
- In the coming 40 years, mankind will have to produce more food than in the previous 10 000 years put together
- Population growth will have a huge impact on future food demands
- Rising middle class is causing diet changes in developing countries
- Agricultural land is increasingly becoming scarcer
The Connection to the world of Sustainable Tropical Agriculture | 10 |
SIPEF group - Palm oil in the world
Oil and fat consumption
Oil and fat consumption per capita (in Kg) | Source: Oilworld |
80
72,58
70 67,32
59,43 | ||||||||||||
60 | ||||||||||||
55,77 | 54,95 | |||||||||||
50 | +55% | 49,47 | ||||||||||
39,05 | ||||||||||||
40 | ||||||||||||
35,54 | ||||||||||||
30 | 27,55 | 29,93 | ||||||||||
26,07 | 25,86 | |||||||||||
25,52 | ||||||||||||
21,46 | ||||||||||||
20 | 18,29 | |||||||||||
15,57 | 15,15 14,04 | |||||||||||
10 | ||||||||||||
0 | ||||||||||||
EU-28 | USA | China | India | Indonesia | Pakistan | Nigeria | Brazil | World | ||||
2018 | 2012 | |||||||||||
11
SIPEF group - Palm oil in the world
Palm oil in the world - Land input
- Increased demand for meat/fat/processed foods
- Increased demand for biofuel
- Decreasing Agricultural land per capita
- Disposable income growth in developing countries
The Connection to the world of Sustainable Tropical Agriculture | 12 |
SIPEF group - Palm oil in the world
Palm oil in the world - Comparison to other oils
Resources used per vegetable oil:
The Connection to the world of Sustainable Tropical Agriculture | 13 |
SIPEF group - Palm oil in the world
Palm oil in the world - Vegetable oils
2019 : 234,7 million Ton
Others
19%
Palm kernel and coconut
oil 5%
Sunflower oil
9%
Rapeseed oil
11%
Palm oil | Soybean oil |
Rapeseed oil | Sunflower oil |
Palm oil
32%
Soybean oil
24%
Source: Oilworld
1994/95: 93,1 million tonnes
Palm oil
16%
Other oils/animal
fats
37%
Soya oil
21%
Palm kernel and | Rape oil | |
coconut oil | ||
Sunflower oil | 11% | |
6% | ||
9% | ||
Palm oil | Soya oil | Rape oil |
Sunflower oil | Palm kernel and coconut oil | Other oils/animal fats |
14
SIPEF group - Palm oil in the world
Palm oil in the world - Palm oil production
2019 Palm oil production Total of 75,6 Mn tonnes
Middle & South America
4%
Africa
2%
Thailand
4%
Malaysia
26%
Source: Oilworld
Other countries
7%
Indonesia
57%
Indonesia | Malaysia | Thailand | Africa | Middle & South America | Other countries | |
15
SIPEF group - Palm oil in the world
Palm oil in the world - Sustainability
- Palm oil remains confronted with a European perception problem based on
- Health issues
- No fat<-> moderate use of saturated fat
- Saturated fats - only 50% saturated and no transfats
- Environmental issues
- Deforestation - most efficient vegetable oil/hectare of land
- Sustainable Development Goals - Palm Oil covers the majority of it!
The Connection to the world of Sustainable Tropical Agriculture | 16 |
SIPEF group - Palm oil in the world
Palm oil in the world - Sources for deforestation
The Connection to the world of Sustainable Tropical Agriculture | 17 |
SIPEF group - Palm oil in the world
Palm oil in the world - Commodity commitment
18
SIPEF group - Palm oil in the world
Palm oil in the world - Global land use
19
SIPEF group - Palm oil in the world
Palm oil in the world - Land use of foods per 1000 kcal
20
SIPEF group - Palm oil in the world
Palm oil in the world - Sustainable palm oil
3,05 Million Ha RSPO certified production area
RSPO Certified Ha (in KHa)
- 500
- 000
- 500
- 000
- 500
-
000
500
0
The Connection to the world of Sustainable Tropical Agriculture | 21 |
SIPEF group - Palm oil in the world
Palm oil in the world - Biodiesel use of major feedstock (Mn T)
Biodiesel use of major feedstock (Mn T)
50,00
45,00
40,00 | 10,16 | ||||||||||||||||||
9,46 | |||||||||||||||||||
35,00 | |||||||||||||||||||
8,26 | 6,52 | ||||||||||||||||||
30,00 | 7,62 | ||||||||||||||||||
5,93 | 6,69 | ||||||||||||||||||
25,00 | 5,50 | 6,35 | |||||||||||||||||
6,94 | |||||||||||||||||||
4,57 | 6,84 | ||||||||||||||||||
7,21 | |||||||||||||||||||
3,67 | |||||||||||||||||||
20,00 | 6,96 | 17,62 | |||||||||||||||||
6,30 | |||||||||||||||||||
14,61 | |||||||||||||||||||
2,71 | 6,20 | ||||||||||||||||||
6,23 | |||||||||||||||||||
15,00 | 2,55 | 10,76 | 11,47 | ||||||||||||||||
1,82 | 6,38 | 10,16 | 8,62 | ||||||||||||||||
9,06 | |||||||||||||||||||
5,89 | |||||||||||||||||||
6,97 | |||||||||||||||||||
10,00 | 5,30 | ||||||||||||||||||
5,02 | |||||||||||||||||||
1,43 | |||||||||||||||||||
4,12 | 3,47 | 4,08 | |||||||||||||||||
2,16 | 10,74 | 11,39 | |||||||||||||||||
5,00 | 7,37 | 6,85 | 7,07 | 8,06 | 7,64 | 9,19 | 9,78 | ||||||||||||
1,22 | 4,32 | 4,34 | 5,34 | ||||||||||||||||
2,80 | |||||||||||||||||||
0,00 | |||||||||||||||||||
2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | |||||||
Soya oil | Palm oil | Rape oil | Other oils | ||||||||||||||||
The Connection to the world of Sustainable Tropical Agriculture | 22 |
SIPEF group - Palm oil in the world
Biodiesel worldwide
Biodiesel worldwide2019
Total of 45,7 Mn tonnes
11%
4%
Biodiesel worldwide2017 Total of 35,8 Mn tonnes
10%
4%
Source: Oilworld
0%
39%
6%
1%
14%
25% | |||
Palm Oil | Soya Oil | Rapeseed Oil | Sunflower Oil |
Tallow | Coconut oil | Other oils & fats | Used cooking oil |
31%
7%
1%
19%
27%
Palm oil | Soya | Rapeseed oil | Sunflower oil |
Tallow | Coconut oil | Other oils and fats | Used cooking oil |
23
SIPEF group - Palm oil in the world
Palm oil use for biodiesel EU
2019: Palm oil use for Biodiesel
Total of 17,6 Mn tonnes
Source: Oilworld
2017 Palm oil use for Biodiesel
Total of 11,7 Mn tonnes
EU
26%
EU
36%
4,5 Mn tonnes | 4,2 Mn tonnes |
13,1 Mn tonnes
7,4 Mn tonnes
Non EU
64%
NON EU
74%
EU Non EU
EU NON EU
24
Summary
SIPEF group - Company profile
SIPEF group - Palm oil in the world
SIPEF group - Update expansion
SIPEF group - Production & prices
SIPEF group - Financial performance
SIPEF Group - Peer review
The Connection to the world of Sustainable Tropical Agriculture | 25 |
SIPEF group - Expansion
Strategy & expansion
SIPEF group = 100.000 Ha planted
Focus on core-business
- Palmoil - Rubber - Bananas - Tea
- Indonesia - Papua New Guinea
Focus on 'Sustainable Agriculture' (RSPO)
Expansion of existing activities
Acquisition of new investments
Balanced leverage
The Connection to the world of Sustainable Tropical Agriculture | 26 |
SIPEF group - Expansion
Increase in Ha (100%)
100.000
91 568 Ha | 92 407 Ha | ||
90.000 | |||
80 540 Ha | 82 968 Ha | ||
80.000 | 78 213 Ha | ||
70.000
60.000
69 439 Ha
56 811 Ha
50.000
40.000
30.000
20.000
10.000
0
48 093 Ha
2005 | 2008 | 2016 | 2017 | 2018 | 2019 | 2023 | 2029 | |||||||||||||
North Sum | North Sum expansion | Bengkulu | Bengkulu expansion | PNG | PNG expansion | Musi Rawas | Dendy Marker | Ivory Coast | Ivory Coast expansion | 27 | ||||||||||
140.000
120.000
100.000
80.000
60.000
40.000
20.000
0
SIPEF group - Expansion
Supply base (in hectares): own ha and outgrowers ha - 100%
21.370 | 22.208 | 22.755 | 23.029 | 23.029 | 23.029 | 23.029 | 23.029 | 23.029 | 23.029 | 23.029 |
82.968 | 84.985 | 87.542 | 90.244 | 91.568 | 91.747 | 92.220 | 92.385 | 92.407 | 92.407 | 92.407 |
2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||
Own ha | Outside ha | ||||||||||||
The Connection to the world of Sustainable Tropical Agriculture | 28 |
SIPEF group - Expansion
100% CPO production (including plasma and outgrowers - NO FFB)
700.000
600.000
500.000
400.000
300.000
200.000
100.000
2029
Own: 481 Kton
Outg: 92 Kton
Total: 573 Kton
0
2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 |
Own | Outgrowers | 29 | |
Musi Rawas Projects: Area Map
The Connection to the world of Sustainable Tropical Agriculture
SIPEF group - Expansion
South Sumatra - full scope of development June 2020
Latest update | Musi rawas | Dendymarker | Total |
Total Planted / Cleared | 12 958 | 8 986 | 21 944 |
Identified | 9 847 | 1 607 | 11 454 |
Potential development | 22 805 | 10 594 | 33 399 |
INTI | 19 004 | 7 813 | 26 817 |
PLASMA | 3 801 | 2 781 | 6 582 |
The Connection to the world of Sustainable Tropical Agriculture | 31 |
SIPEF group - Expansion
Musi Rawas - progress June 2020
MUSI RAWAS | Acquired Ha | Secured Ha | |
PT AKL | 4.990 | 4.591 | 92% |
PT ARU | 3.672 | 2.770 | 75% |
PT AMR | 7.823 | 5.597 | 72% |
Total OLD | 16.485 | 12.958 | 79% |
Potential Ha | 18.507 | ||
89% | |||
AMR III | 33 | 0 | 0% |
AMRS | 217 | 0 | 0% |
AKLE | 143 | 0 | 0% |
Total NEW | 393 | 0 | 0% |
Potential Ha | 4.298 | ||
9% | |||
GRAND TOTAL | 16.879 | 12.958 | 77% |
Potential HA | 22.805 | 22.805 | 100% |
% of total | 74% | 57% |
The Connection to the world of Sustainable Tropical Agriculture | 32 |
Crop & Processing Requirements: Based on LTBP 2020-2030.
MT FFB
South Sumatra Total Crop (Inti & Plasma): 2020-2030 | AKL | ARU | AMR | DIL | ||||
1.000.000
940,000 MT FFB
900.000
800.000
700.000
600.000
500.000
400.000
300.000
200.000
100.000
0
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
195 T/Hr | |||
DILPOM | AMRPOM | AKLPOM | Capacity |
20-60 | |||
45-90 | 45 | ||
The Connection to the world of Sustainable Tropical Agriculture
Summary
SIPEF group - Company profile
SIPEF group - Palm oil in the world
SIPEF group - Update expansion
SIPEF group - Production & prices
SIPEF group - Financial performance
SIPEF Group - Peer review
The Connection to the world of Sustainable Tropical Agriculture | 34 |
SIPEF group - Production & prices
Group production palm oil - June 2020 | |||||
Palm Oil | June 2020 | June 2019 | Variance | ||
Own | |||||
Tolan Tiga Group | 31 654 | 31 438 | 0,69% | ||
Umbul Mas Wisesa Group | 17 593 | 18 300 | -3,86% | ||
Agro Muko Group | 42 630 | 35 723 | 19,33% | ||
South Sumatra Group | 6 764 | 5 548 | 21,92% | ||
Hargy Oil Palms | 32 253 | 37 069 | -12,99% | ||
Total own | 130 894 | 128 078 | 2,20% | ||
Outgrowers | |||||
Tolan Tiga Group | 158 | 0 | - | ||
Umbul Mas Wisesa Group | 76 | 61 | 24,59% | ||
Agro Muko Group | 1 940 | 1 496 | 29,68% | ||
South Sumatra Group | 689 | 389 | 77,12% | ||
Hargy Oil Palms | 28 611 | 23 672 | 20,86% | ||
Total outgrowers | 31 474 | 25 618 | 22,86% | ||
Total Palm Oil | 162 368 | 153 696 | 5,64% |
35
SIPEF group - Production & prices
Group production rubber - June 2020
Rubber | June 2020 | June 2019 | Variance | ||
Own | |||||
Tolan Tiga Group | 270 | 384 | -29,69% | ||
Melania | 1 583 | 1 617 | -2,10% | ||
Agro Muko | 934 | 1 067 | -12,46% | ||
Total own | 2 787 | 3 068 | -9,16% | ||
Outgrowers | |||||
Tolan Tiga Group | 259 | 296 | -12,50% | ||
Total Rubber | 3 046 | 3 364 | -9,45% |
The Connection to the world of Sustainable Tropical Agriculture | 36 |
SIPEF group - Production & prices
Group production tea & bananas - June 2020
Tea | June 2020 | June 2019 | Variance | ||
Melania | 1 478 | 1 312 | 12,65% | ||
Total Tea | 1 478 | 1 312 | 12,65% | ||
Bananas | June 2020 | June 2019 | Variance | ||
Azaguie 1 | 2 670 | 2 505 | 6,59% | ||
Azaguie 2 | 4 327 | 4 311 | 0,37% | ||
Agboville | 4 552 | 4 804 | -5,25% | ||
Motobe | 4 620 | 5 108 | -9,55% | ||
Total Bananas | 16 169 | 16 728 | -3,34% |
The Connection to the world of Sustainable Tropical Agriculture | 37 |
SIPEF group - Production & prices
Bull & Bear
Rating | Bullish inputs | Bearish inputs | |||
Palm Oil | Neutral | - | Indo & Mal prod is slightly lower than expected. Our BBC shows | - | Covid - 19: turned the global economy in a never foreseen recession. Impact not |
a flat production instead of the seasonal increase. | felt to the full extent. | ||||
Aug 685 | |||||
- | July and Aug prod will show the trend. | - | Still a lot of uncertainty how Covid-19 will impact in the next 12 months….. | ||
Sept 685 | - | Demand, particular food, has been very strong to replenish low | - | Permanent demand loss due to lockdown in March/May period…estimated to be 2 | |
Oct 665 | destination stocks. Triggering lower stocks and inverted | to 3 mln mt. | |||
markets. | - | B30 program under serious financial constraints….the CPO Fund will run out of | |||
ND 660 | |||||
- | EU biodiesel demand better than expected due to high | money in Q4 at current POGO spread. Or will the Indo government find an | |||
JFM 665 | rapeseed oil prices. Also Brasil B12 program seems to be still | alternative manner to finance the biodiesel program (big risk to see an increase in | |||
AMJ 670 | running. | export levy if price rise). | |||
- | Strong soybeans & soybean oil exports from Latam, very low | - | Fantastic US growing conditions, increasing yield, expectation of a big crop….Aug | ||
stocks. | weather will be important how big the crop will be. | ||||
- | Weak US dollar, good for most US denominated commodities. | - | There is a still a massive divergence on the palm oil crop assessment for the next 5 | ||
- | How much will the Chinese State Reserve buy? | months…..if the big crop side is right, we will see a significant stocks build. | |||
- | There is still a big (Chinese) speculator long position, when will they take profit? |
Rubber | Neutral | - | Low price environment | - | Automobile industry hit by minimum 15% decline, based on Michelin's projection. |
- | Futures rallied (but no idea why!) | Likely a bigger decline globally. | |||
RSS3 1558 | |||||
- | No physical activity as stocks at factories still filled. | ||||
SIR10 1237 | |||||
Tea | Neutral | - | Low price environment | - | Kenyan prod still good and a lot of auction volume left unsold |
- | Pakistan also suffering from Corona lockdown | ||||
SIPEF group - Production & prices
CPO prices CIF Rotterdam 2019-2020
Crude Palm Oil in $/mt | Source: Oilworld | ||||||||||
850 | CIF Rotterdam | ||||||||||
800 | |||||||||||
750 | |||||||||||
700 | |||||||||||
650 | |||||||||||
600 | |||||||||||
550 | |||||||||||
500 | |||||||||||
450 | |||||||||||
J | F | M | A | M | J | J | A | S | O | N | D |
2019 | 2020 |
SIPEF group - Production & prices
Spread crude palm oil - soybean oil
Spread CPO - Soybean oil | Source: Worldbank |
1600
1400
1200
1000
800
600
400
2010M01 | 2010M03 | 2010M05 | 2010M07 | 2010M09 | 2010M11 | 2011M01 | 2011M03 | 2011M05 | 2011M07 | 2011M09 | 2011M11 | 2012M01 | 2012M03 | 2012M05 | 2012M07 | 2012M09 | 2012M11 | 2013M01 | 2013M03 | 2013M05 | 2013M07 | 2013M09 | 2013M11 | 2014M01 | 2014M03 | 2014M05 | 2014M07 | 2014M09 | 2014M11 | 2015M01 | 2015M03 | 2015M05 | 2015M07 | 2015M09 | 2015M11 | 2016M01 | 2016M03 | 2016M05 | 2016M07 | 2016M09 | 2016M11 | 2017M01 | 2017M03 | 2017M05 | 2017M07 | 2017M09 | 2017M11 | 2018M01 | 2018M03 | 2018M05 | 2018M07 | 2018M09 | 2018M11 | 2019M01 | 2019M03 | 2019M05 | 2019M07 | 2019M09 | 2019M11 | 2020M01 | 2020M03 | 2020M05 | 2020M07 |
CPO | Soybean oil | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SIPEF group - Production & prices
Rubber prices CIF Rotterdam 2019-2020
RSS3 in $/mt | Source: Worldbank | ||||||||||
2 000 | FOB Singapore | ||||||||||
1 900 | |||||||||||
1 800 | |||||||||||
1 700 | |||||||||||
1 600 | |||||||||||
1 500 | |||||||||||
1 400 | |||||||||||
1 300 | |||||||||||
1 200 | |||||||||||
J | F | M | A | M | J | J | A | S | O | N | D |
2019 | 2020 | 41 | |||||||||
Markets, sales prices & productions
Tea prices CIF Rotterdam 2019-2020
Tea in $/mt | Source: Worldbank | ||||||||||
average auction Mombasa | |||||||||||
2 650 | |||||||||||
2 550 | |||||||||||
2 450 | |||||||||||
2 350 | |||||||||||
2 250 | |||||||||||
2 150 | |||||||||||
2 050 | |||||||||||
1 950 | |||||||||||
1 850 | |||||||||||
1 750 | |||||||||||
J | F | M | A | M | J | J | A | S | O | N | D |
2019 | 2020 | 42 | |||||||||
Summary
SIPEF group - Company profile
SIPEF group - Palm oil in the world
SIPEF group - Update expansion
SIPEF group - Production & prices
SIPEF group - Financial performance
SIPEF Group - Peer review
The Connection to the world of Sustainable Tropical Agriculture | 43 |
SIPEF group - Financial performance
Sales - consolidated gross margin
120 000
100 000
- 000
- 000
- 000
100 229
93 847
19,8%
20 000 | 13,6% | |||||||||
11 443 | 10 943 | |||||||||
4 938 | 3 116 | 2 247 | 2 922 | 15,8% | 16,9% | |||||
--7,1% | -48,1% | -24,7% | ||||||||
-17,8% | ||||||||||
0 | ||||||||||
Palm | Rubber | Tea | Bananas | |||||||
-20 000
2019 Sales | 2019 Gross Margin | 2020 Sales | 2020 Gross Margin | |||
44 |
SIPEF group - Financial performance
Gross margin - Results before tax (management presentation)
In KUSD (condensed) | June 2020 | June 2019 | %change | |
Gross margin per product | ||||
Palm | 19 823 | 12 | 748 | 7 075 |
Rubber | -1 498 | - 350 | -1 148 | |
Tea | - 519 | - 555 | 36 | |
Bananas and flowers | 1 844 | 1 806 | 38 | |
Total gross margin | 19 650 | 13 649 | 6 001 | |
Net general & administrative expenses | -15 142 | -15 929 | 787 | |
Other operating income/(charges) | 113 | 203 | - 90 | |
Financial | ||||
income/(charges) | -2 247 | -2 016 | - 231 | |
Discounting Sipef-CI | 613 | 845 | - 232 | |
Exchange differences | - 519 | - 478 | - 41 | |
Profit before tax | 2 468 | -3 725 | 6 193 |
The Connection to the world of Sustainable Tropical Agriculture | 45 |
SIPEF group - Financial performance
Net profit after tax (management presentation)
In KUSD (condensed) | June 2020 | June 2019 | %change | |
Profit before tax | 2 | 468 | -3 725 | 6 193 |
Tax expense | -1 | 686 | - 412 | -1 274 |
Effective tax rate | -68,3% | 11,1% | -79,4% | |
Result after tax | 782 | -4 137 | 4 919 | |
Share of associated companies | - 578 | - 883 | 305 | |
Profit after tax | 204 | -5 020 | 5 224 |
The Connection to the world of Sustainable Tropical Agriculture | 46 |
SIPEF group - Financial performance
Consolidated balance sheet (management presentation)
In KUSD (management presentation) | 30/06/2020 | 31/12/2019 |
Biological assets (depreciated costs) - bearer plants | 310 134 | 306 342 |
Goodwill | 104 782 | 104 782 |
Other fixed assets | 361 497 | 365 412 |
Receivables > 1 year | 15 055 | 13 442 |
Net current assets, net of cash | 89 385 | 94 013 |
Net cash position | -165 569 | -164 623 |
Total net assets | 715 284 | 719 368 |
Shareholders' equity, group share | 625 786 | 628 686 |
Non controlling interest | 35 240 | 34 325 |
Provisions and deferred tax liabilities | 54 258 | 56 358 |
Total net liabilities | 715 284 | 719 368 |
47
SIPEF group - Financial performance
Inventory overview
CPO inventory overview
50.000 | |
45.000 | |
40.000 | |
35.000 | |
of CPO | 30.000 |
25.000 | |
Tons | 20.000 |
15.000 |
10.000
5.000
0
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
2019
2020
The Connection to the world of Sustainable Tropical Agriculture | 48 |
SIPEF group - Financial performance
Covenant testing
Net debt (IFRS definition) June 2020 | -165 569 | ||
7-12m19 | 1-6m20 | 12m period | |
Operating result | 7 018 | 4 621 | 11 639 |
Exceptional items | 0 | 0 | 0 |
Recurring operating result | 7 018 | 4 621 | 11 639 |
Depreciation | 22 583 | 21 371 | 43 954 |
REBITDA | 29 601 | 25 992 | 55 593 |
Minus minorities recurring | -416 | -916 | -1 332 |
REBITDA group share | 29 185 | 25 076 | 54 261 |
Net Senior Leverage | 3,0513 |
- Financial covenant per 30/06/2020 = 3,25x → OK!
The Connection to the world of Sustainable Tropical Agriculture | 49 |
SIPEF group - Financial performance
Cash flow (management presentation)
Cash flow in KUSD | June 2020 |
Cash flow from operations before working capital | 26 416 |
Working capital movements | 160 |
Taxes paid | -3 821 |
Cash flow from operations (a) | 22 755 |
Cash flow from investing | -21 948 |
Cash flow from desinvesting | 1 344 |
Cash flow from investing in VBS | -1 609 |
Cash flow from sales Sipef CI | 1 371 |
Investing activities (b) | -20 842 |
Free cash flow (a+b) | 1 913 |
The Connection to the world of Sustainable Tropical Agriculture | 50 |
SIPEF group - Financial performance
Cash flow (management presentation)
Cash flow in KUSD (continued) | June 2020 |
Free cash flow (a+b) | 1 913 |
Dividends paid by subsidiaries to minorities | -516 |
Interest received/paid | -2 343 |
Net increase/decrease in NFP | -946 |
Net financial position in KUSD | June 2020 |
NFP opening position | - 164 623 |
Net increase/decrease in cash | -946 |
NFP closing position | -165 569 |
The Connection to the world of Sustainable Tropical Agriculture | 51 |
SIPEF group - Financial performance
Value per hectare
Sensitivity 30/06/2020 | |
Stock price @ | USD per hectare |
30,00 | 5 796 |
40,00 | 7 289 |
50,00 | 8 781 |
60,00 | 10 274 |
70,00 | 11 767 |
80,00 | 13 259 |
46,50 (dd 11/08/2020) | 8 259 |
52
SIPEF group - Financial performance
Prospects
- Production
- Prospects for palm oil production for the third quarter are rather poor (likely affected by last year's long drought);
- The previously announced 10% increase in annual volumes will probably not be achieved;
- The Pestalotiopsis fungus is expected to continue to affect rubber activities negatively in the second half;
- Expectations for tea and banana production for second half of the year remain slightly positive.
- Markets
- General production prediction in Indonesia is rather poor which triggered significant stock reductions in palm oil → supported rally in palm oil price in June/July;
- How will B30 biodiesel blending program evolve in coming months?
- Rubber very dependent on automobile industry which is highly effected by the pandemic;
- Tea production is declining seasonally which should move prices up moderately.
53
SIPEF group - Financial performance
Prospects
- Cash flow and expansion
- Investment policy remains to be fully focused on development of palm oil activities in South Sumatra;
- Steadily continuing on replanting of own palm plantation areas in Dendymarker;
- Group remains faithful to its intention to renew the old Dendymarker plantings and to develop Musi Rawas concessions despite the uncertainties that covid-19 brings;
- Due to the persistently low prices for natural rubber and the lack of prospects for the future, specific measures are also being worked out for a restructuring of the rubber activities in the SIPEF group
- Result
- 76% of expected production volumes have been sold at an average price of USD 692 CIF Rotterdam, premiums included. Production volumes gradually brought onto the market;
- Considering the already realized sales of palm oil and based on the recent market prices, the Group expects a return to a recurring profit position for the year 2020
54
Summary
SIPEF group - Company profile
SIPEF group - Palm oil in the world
SIPEF group - Update expansion
SIPEF group - Production & prices
SIPEF group - Financial performance
SIPEF Group - Peer review
The Connection to the world of Sustainable Tropical Agriculture | 55 |
Peer review
Disclaimer
The information contained in this section is provided for your general information only and is not designed nor intended to offer anything more than information only.
The information with respect to the companies included in the Peer Review was retrieved from publicly available information being annual reports and company websites on the one hand and from analyst reports we received on the other hand. In some cases we had to give our own interpretation to the available information in order to get comparable indicators.
As a consequence of using different sources combined with giving our own interpretation to the available information, the information may not always be correct and SIPEF does not accept any liability for loss and damage that may arise from relying upon this information.
The Connection to the world of Sustainable Tropical Agriculture | 56 |
Peer review
Principle assumptions
- Benchmark of main industrial competitors
- Age profile based on own ageing interpretation
- Market capitalization is calculated based on the average exchange rate & average share price of the year
- Benchmark based on own CPO productions of competitors:
Tons | |
CPO own production benchmark (2018) | 11.605.720 |
Worldwide production (Oilworld 2018) | 72.875.000 |
- Representative sample of comparable industry competitors (2018): 31,9%
- Industrial comparable companies (50%)
The Connection to the world of Sustainable Tropical Agriculture | 57 |
Peer review
Own planted Oil Palm Hectares in KHa (2018)
Sime Darby
Golden Agri-Resources
Felda Global Ventures
Salim Ivomas Pratama
Wilmar International
Astra Agro Lestari
Kuala Lumpur Kepong
First Resources
IOI Corporation
Genting Plantations
Bumitama
Eagle High Plantations
London Sumatra Indon
Socfinaf
Sampoerna Agro
SIPEF Anglo Eastern Plantations
Socfinasia
MP Evans
R.E.A. Holdings
251
230
218
214
180
174
144
132
126
96
91
84
72
66
39
39
37
600
394
339
Plantation
Integrated
Sipef
2017 | 2018 | Var % | ||
Total | 3.546 | 3.528 | -0,5% | |
Sipef | 69,30 | 71,50 | 3,2% | |
The Connection to the world of Sustainable Tropical Agriculture | 58 |
Peer review
Age Profile: Average age planted hectares (2018)
Golden Agri-Resources
London Sumatra Indon
Astra Agro Lestari
Salim Ivomas Pratama
Socfinasia
Felda Global Ventures
IOI Corporation
R.E.A. Holdings
Sime Darby
Kuala Lumpur Kepong
Socfinaf
Wilmar International
Sampoerna Agro
First Resources
Genting Plantations
Anglo Eastern Plantations
SIPEF
Bumitama
Eagle High Plantations
MP Evans
16,0
16,0
15,3
15,0
14,5
14,3
14,0
13,8
12,8
12,1
11,7
11,0
11,0
11,0
10,7
10,5
10,3
9,8
9,4
7,0
Plantation
Integrated
Sipef
2017 2018 Var %
Average 11,97 12,31 2,9%
Sipef | 10,26 | 10,32 | 0,6% |
The Connection to the world of Sustainable Tropical Agriculture | 59 |
Peer review
FFB Yield - MT/ha (2018)
Socfinasia
IOI Corporation
R.E.A. Holdings
Golden Agri-Resources
SIPEF
Astra Agro Lestari
Kuala Lumpur Kepong
Wilmar International
Sime Darby
Bumitama
MP Evans
First Resources
Anglo Eastern Plantations
Genting Plantations
London Sumatra Indon
Felda Global Ventures
24,4
23,6
23,1
22,5
22,2
21,8
21,6
21,6
20,5
20,4
19,3
18,9
18,6
18,2
17,4
16,9
Plantation
Integrated
Sipef
Salim Ivomas Pratama
Sampoerna Agro
Socfinaf
Eagle High Plantations
15,9 | ||||
15,0 | 2017 | 2018 | Var % | |
14,9 | Average | 17,8 | 19,5 | 9,2% |
12,3 | Sipef | 23,9 | 22,2 | -6,9% |
Sipef including the South Sumatra Group as of 2018
The Connection to the world of Sustainable Tropical Agriculture | 60 |
Peer review
Extraction rate from FFB to CPO (2018)
MP Evans
SIPEF
London Sumatra Indon
Socfinasia
Eagle High Plantations
First Resources
R.E.A. Holdings
Bumitama
Socfinaf
Salim Ivomas Pratama
Golden Agri-Resources
Kuala Lumpur Kepong
Sampoerna Agro
Genting Plantations
Sime Darby
IOI Corporation
Anglo Eastern Plantations
Felda Global Ventures
Astra Agro Lestari
Wilmar International
23,5% | ||||
23,4% | ||||
23,0% | ||||
22,9% | ||||
22,9% | ||||
22,9% | ||||
22,5% | ||||
22,1% | Plantation | |||
22,0% | ||||
22,0% | Integrated | |||
21,9% | ||||
21,8% | ||||
21,3% | Sipef | |||
21,3% | ||||
21,0% | ||||
20,9% | ||||
20,7% | 2017 | 2018 | Var % | |
20,5% | Average | 21,9% | 21,8% | -0,4% |
20,3% | Sipef | 23,4% | 23,4% | -0,2% |
20,0% |
The Connection to the world of Sustainable Tropical Agriculture | 61 |
Peer review
CPO Yield - MT/ha (2018)
Socfinasia
R.E.A. Holdings
SIPEF
IOI Corporation
Golden Agri-Resources
Kuala Lumpur Kepong
MP Evans
Bumitama
Astra Agro Lestari
First Resources
Wilmar International
Sime Darby
London Sumatra Indon
Genting Plantations
Anglo Eastern Plantations
Salim Ivomas Pratama
Felda Global Ventures
Socfinaf
Sampoerna Agro
Eagle High Plantations
5,59 | ||||
5,40 | ||||
5,19 | ||||
4,93 | ||||
4,93 | ||||
4,72 | ||||
4,54 | ||||
4,51 | Plantation | |||
4,40 | ||||
4,33 | Integrated | |||
4,32 | ||||
4,31 | ||||
4,00 | Sipef | |||
3,88 | ||||
3,84 | ||||
3,51 | ||||
3,46 | ||||
3,29 | 2017 | 2018 | Var % | |
3,20 | Average | 3,91 | 4,26 | 8,9% |
Sipef | 5,58 | 5,19 | -7,0% | |
2,82 | ||||
The Connection to the world of Sustainable Tropical Agriculture | 62 |
Peer review
Market Cap in MUSD (2018)
Wilmar International
Sime Darby
IOI Corporation
Kuala Lumpur Kepong
Golden Agri-Resources
First Resources
Genting Plantations
Astra Agro Lestari
Felda Global Ventures
Bumitama
SIPEF
London Sumatra Indon
Salim Ivomas Pratama
MP Evans
Eagle High Plantations
Anglo Eastern Plantations
Sampoerna Agro
Socfinasia
Socfinaf
R.E.A. Holdings
2.872
1.947
1.929
1.676
1.415
883
705
591
558
538
448
363
306
381
294
163
14.804
9.081
7.060
6.594
Plantation
Integrated
Sipef
2017 | 2018 | Var % | |
Total | 2.765 | 2.630 | -4,9% |
Sipef | 750 | 705 | -6,0% |
The Connection to the world of Sustainable Tropical Agriculture | 63 |
Peer review
Dividend Yields (based on average market cap 2018)
Socfinasia
IOI Corporation
Bumitama
Wilmar International
Sime Darby
Sampoerna Agro
Astra Agro Lestari
Golden Agri-Resources
First Resources
Kuala Lumpur Kepong
MP Evans
London Sumatra Indon
Genting Plantations
SIPEF
Socfinaf
Anglo Eastern Plantations
Felda Global Ventures
Salim Ivomas Pratama0,0%
R.E.A. Holdings0,0%
Eagle High Plantations0,0%
2,0%
1,8%
1,8%
1,5%
1,3%
1,0%
0,7%
0,4%
5,5%
4,5%
4,0%
3,3%
3,2%
2,9%
2,7%
2,6%
Plantation
Integrated
Sipef
The Connection to the world of Sustainable Tropical Agriculture | 64 |
Peer review
Price Earning Ratio (based on average market cap 2018)
Socfinaf
Genting Plantations
Kuala Lumpur Kepong
Anglo Eastern Plantations
SIPEF
London Sumatra Indon
Sime Darby
Astra Agro Lestari
First Resources
Wilmar International
Socfinasia
Bumitama
IOI Corporation
MP Evans * 0,0 Sampoerna Agro * 0,0
Golden Agri-Resources *
Salim Ivomas Pratama *
Felda Global Ventures * 0,0
R.E.A. Holdings * 0,0 Eagle High Plantations * 0,0
52,4
47,2
35,1
31,8
31,0
25,4
21,3
16,6
16,2
13,1
12,5
11,7
9,3
Plantation
Integrated
Sipef
* Not included as irrelevant (profit close to break-even or loss for the year)
The Connection to the world of Sustainable Tropical Agriculture | 65 |
Peer review
Net financial position/Equity Ratio (2018)
Eagle High Plantations
Wilmar International
Socfinaf
R.E.A. Holdings
Sampoerna Agro
Golden Agri-Resources
Felda Global Ventures
Bumitama
IOI Corporation
Salim Ivomas Pratama
Genting Plantations
Sime Darby
First Resources
Kuala Lumpur Kepong
Astra Agro Lestari
SIPEF
Socfinasia
MP Evans
London Sumatra Indon* Anglo Eastern Plantations*
* Cash surplus at the end of the year
141,7%
83,7%
83,2%
72,5%
70,0%
65,4%
63,2%
54,7%
50,8%
43,9%
42,6%
37,6%
28,5%
24,4%
24,0%
17,9%
2,9%
1,5%
-20,0%
-20,0%
Plantation
Integrated
Sipef
The Connection to the world of Sustainable Tropical Agriculture | 66 |
The Connection to the world of Sustainable Tropical Agriculture | 67 |
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Disclaimer
Sipef NV published this content on 13 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 August 2020 16:12:06 UTC
